Go meet up with Yurgen near the exit to the Subterranean Passage and he'll join you on the trip to Kanbalar. Make sure to finish up on all the available sub events before crossing the Mon Highlands into Kanbalar.

Once you're ready to go, follow the Subterranean Passage out to the Mon Highlands, where you must look around for freebies as always. Some key loot include the two Aifread treasures - one in the Central Region and another in the North Branch. Heart Herbs which are necessary for a quest, are obtainable from loot bags and gathering points around here.

Additionally, there is a Mysterious Jewel in a chest found within a hole in the wall at the North Branch. That particular section of the Mon Highlands is reached by passing through the Silent Cave and crawling into a hole.

After Yurgen leaves for the castle, go to the inn and rest once you've checked the rooms for items. Elize will then run off alone to the Residential District in the following scene. Catch up to her by taking the northwest exit from the Main Road. Visit the only house that you can enter while you're there and check the drawers inside for another Mysterious Jewel.

Also, you may want to consider completing all of the sub events in this city first before heading to the castle, as the upcoming events will prevent you returning here until the end of Chapter 3. Save your game and pass through the northeast exit from the Main Road to the castle when ready.

Approach the throne room for some events which end with the party having to escape from the city. You can hang around the castle for a bit to gain a few levels. After exiting the castle, check the gate to the southeast then head down the Main Road toward a fight against Wingul and Presa.

For the first time in game, you'll be facing enemies that can do link artes just like you. Between the two of them, get rid of Presa first since she's easier to hit and has less health. Plus, her attacks can inflict ailments (Foxtail: Confuse, Splash: Weak). Presa is weak to fire-based artes.

For Wingul, his moves are fast which makes them rather difficult to avoid so just defend. He is weak to earth-based artes. Elize must be your main healer. Panacea Bottles should be set to heal any ailments in Auto Items.